No Contracts for Tax Evaders

The Minister of Finance, Mr. Yaw Osafo-Maafo has served notice that companies who engage in consultancy and have not fulfilled their tax obligations would not be awarded government contracts.

He warned government departments and agencies not to award contracts to consultants who have failed to pay their tax commitments.

Mr. Osafo-Maafo speaking to the media in Accra last Friday therefore urged departments and agencies to check from the Internal Revenue Service (IRS) the tax documents of consultants.

Earlier the Finance Minister inaugurated the newly constituted board of the Ghana Re-Insurance Company and led the members to swear the Oaths of Secrecy and Office.

Mr. Osafo-Maafo commended the company for their immense contribution to the insurance industry the past twenty-nine years. He tasked the board to take steps to recover the huge debt in the tune of ¢52bn owed it by local companies.

He said Ghana Re since its establishment as the first national reinsurance institution in West Africa, has provided adequate reinsurance cover for major risks in the nation which otherwise would have been exposed to elemental calamities.

Further, Mr. Osafo-Maafo said Ghana Re has helped to stem the outflow of foreign exchange which would have gone out in the form of reinsurance premiums to the benefit of foreign reinsurance companies.

"Apart from curbing the outflow of hard earned foreign exchange, Ghana Re has been a source of huge funds for investment in the Ghanaian economy. Ghana Re has also been an important foreign exchange earner through its dealings with overseas trading partners."

The minister noted that the foreign reinsurance premium earnings achieved by the company has dwindled over the past three years and urged the board to address the situation. He said in 1995 they earned US$984, 000, in 1996; US$1.3 million and US$1.5 million in 1997. For the years 1998 to 2000 the earnings were US$1.7m, US$894, 000 and US$743, 000 respectively.

He regretted that reinsurance companies established later in the sub-region have outpaced the Ghana Re in premium income generation. He therefore urged the board members to evolve policies and initiatives that will propel the company to the cutting edge of the prevailing highly competitive economic environment.

A lecturer at the Faculty of Law at the University of Ghana, Mrs. Christine D. Hammond, chairs the seven-member board.

She said the board would work as a team to discharge the heavy responsibilities and challenges ahead. Mrs. Hammond said the board is committed to doing every thing to ensure the goals of the company for the economic growth of the country.

The board consists of Ms. Jennifer Amoah, the Commissioner of NIC, Mr. Samson Nuamah, MD of Ghana Re and Mr. William Agbenyega, member. The rest are Dr. Baah-Nuako, Head of Economics Departments, University of Ghana and Dr. K. Kwakye Maafo.